Nigeria's palm oil problems

Palm oil production in Nigeria is receiving government help. This is in order to create jobs and help the country to move away from crude oil production.

A common ingredient in many foods and widely used in cosmetic products, palm oil is an essential product. Nigeria was once a major producer but now most of its supplies are imported. This creates a problem of foreign currency shortages.

Nigeria is attempting to reboot the industry through loans from the central bank to assist farmers and investors.

Graham Hefer is managing director of large scale producer the Okomu Oil Company.

Graham Hefer: "We’ve been privileged enough to, to get a loan, it has certainly helped us, it has, it has helped us to develop our new extension."

Just 30 percent of Nigeria’s palm oil production comes from large companies like Okomu Oil, with the remaining 70 percent coming from smallholders who are unable to access these funds. However, as there is a national deficit of half a million tonnes of oil a year, small companies are demanding increased support to expand their businesses.

Micah Ojo runs a small farm that produces palm oil as well as grinding palm nuts.

Micah Ojo: "At the end of the day after we filled in forms, whatever we did, at the end of the day the loan never came to us. It does not come down to the real local farmers, that is the problem we are facing."

Globally, the palm oil industry has been seriously criticised for deforestation, loss of community land and claims of staff abuse. However, its supporters, like Ojo say it helps create local jobs and employment and allows the community to help themselves.

Micah Ojo: "We need the government to come to our aid to assist us so that we can also give back to society by employing more workers then they can feed their families and others." Weniger anzeigen